Question

Will I have to pay profit gain taxes if my dad did a warranty deed on our house from his name over to mine? He had to move out of state so I sold the house 5 months after

Forum|Forum|7 years ago
June 6, 2019
1 reply
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We lived in the house for 10 years, my dad did a warranty deed over to my name because he moved back to Chicago. I stayed in the house until it sold. The title was under my name from Aug 2017 to Jan 2018...will I have to pay taxes?

A

Anita01

Employee

You may have to pay tax, depending on the gain. Since your father gifted you the house, your cost basis will be the same as what he paid for it originally plus the cost of any improvements made in the house over the year. You cannot take the main home sale exclusion because you did not own the house for 2 out of the last 5 years. When you enter all your information in the Sale of Home area under income, the program will figure your taxable gain.